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Damage Report: Nokia Blows Up Mobile Sector

A note on these extremely low prices: a January 2010 option straddle on PALM costs less than the stock, controlling 100 shares for over one year, with zero to very little risk through February, largely protected from downside risk and with all the upside potential of the shares if PALM even modestly recovers to around $5. The same strategy applies to almost any of the beaten-down issues, just buy plenty of time (PALM also has a January 2011 LEAP option available). Unless this is the EOW (End of the World), most of these bets should pay off, but it's still nice to have downside protection. There may not be such an opportunity for many years. I'm not doing this yet, as there is still downside money to be made from simply buying puts during the recession. But it will be a sweet way to greet the dawn.